Morning Brief: EU expected to fine Google $5 billion

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On Wednesday, earnings will still be a focus with results expected from S&P 500 members Morgan Stanley (MS), Textron (TXT), and Abbott Labs (ABT) in the morning, while eBay (EBAY) and IBM (IBM) will be among the notable reporters after the market close.

The economics calendar will bring investors the June data on housing starts and building permits, as well as the latest Beige Book from the Federal Reserve. Investors will also hear from Federal Reserve chair Jerome Powell for a second day as he takes questions from members of the House of Representatives during his semi-annual testimony on Capitol Hill.

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REUTERS/Dado Ruvic/Illustration/r/File Photo

EU reportedly expected to fine Google $5B over Android: Alphabet Inc’s Google (GOOGL) will be fined around 4.3 billion euros ($5 billion) by the European Union over Android apps on Wednesday, setting a new record for antitrust penalties, according to a person familiar with the EU decision. The fine, to be announced about midday on Wednesday, ends an EU probe into Google’s contracts with smartphone manufacturers and telecoms operators. [Bloomberg]

What Powell thinks of the flattening yield curve: Federal Reserve Chair Jerome Powell is not explicitly concerned about the flattening Treasury yield curve. Speaking before members of the Senate Banking Committee on Tuesday, Powell was asked by Senator Pat Toomey (R-Pa.) about the declining spread between short-term and long-term Treasury rates. [Yahoo Finance]

Texas Instruments CEO resigns on code of conduct violation: Texas Instruments Inc. (TXN) said on Tuesday that Brian Crutcher had resigned as the company’s chief executive officer just six weeks into the role, due to violations of the chipmaker’s code of conduct on personal behavior. The company’s shares fell as much as 2.5% in after-market trading even as Texas Instruments reported second-quarter earnings and sales figures that beat estimates. [Reuters]

Novartis puts brakes on price hikes: Bolstered by a strong second-quarter, CEO Vas Narasimhan said he expects Novartis to hit the top of its 2018 sales guidance despite joining rival Pfizer (PFE) in freezing U.S. drug prices for the rest of the year. Shares in the Swiss company rose 2.7% in early trading in Zurich on Wednesday. [Reuters]

Musk apologizes for his comments on British caver: Tesla Inc. (TSLA) founder Elon Musk apologized to British caver Vern Unsworth for comments he made about him following the rescue of a dozen Thai schoolboys and their football coach from a cave in northern Thailand. [Reuters]

Former U.S. President Barack Obama delivers the 16th Nelson Mandela annual lecture, marking the centenary of the anti-apartheid leader’s birth, in Johannesburg, South Africa, July 17, 2018. In his highest-profile speech since leaving office, Obama urged people around the world to respect human rights and other values under threat in an address marking the 100th anniversary of anti-apartheid leader Nelson Mandela’s birth. REUTERS/Siphiwe Sibeko